Trade deal. So were really in a win win position. Either the tariffs will continue, or well have an acceptable deal with china. So the important thing is to make sure that the deal is what we think it is, make sure that it is consistent with the premises that theyve made to us. Maria and there was a lot of back and forth about that this week. Also this week we saw signs that the consumer is still strong thanks to great retail sales numbers, better than expected earnings from walmart, among others. All of this led to a texassized rally on wall street. And joining me right now to talk about this week and beyond with is the president of the Dallas Federal Reserve bank, robert kaplan. The president of the bank there. And, robert kaplan, its great to have you this weekend. Thanks so much for joining me. Great to talk to you, maria. Maria how would you assess the economy right now . We did get some okay numbers on the consumer this week, certainly retail sales and walmart numbers. It feel like the consumer is the best thing going for this economy. How do you see things . Yeah, i think the economys solid. Well grow more slowly in for the rest of 2019, but i still believe next year we have a good chance to grow at 2 , and the consumers the key to that. Household Balance Sheets are in pretty good shape, and the job markets tight. And thats offset by decelerating Global Growth, mainly due to trade, weak manufacturing also probably due to trade, and weak Business Investment in the United States. But the consumers 70 of the economy, so i think if they, if the consumer continues to be strong and the other weaknesses dont intensify, we should have not great, but we should have solid growth next year. Maria and, certainly, when you look at unemployment at a 50year low and wages up 3, 3. 25 yearoveryear, that certainly is a strengthening for the consumer. So thats all good news. I want to ask you about cap ex in a moment, but lets talk about this slowdown in manufacturing and what youve seen in texas, the oil business in terms of manufacturing. How do you assess thatsome. That . So i mentioned that due to trade, Global Growth is decelerating, and people have to remember that, a, a meaningful percentage of s p 500 revenues come from outside the United States. But the Energy Business is a good example of an industry that is very reliant on Global Growth because it affects the price of oil. And because the price of oil has been more sluggish, rig count is down, capex here is down, production is down this year over a last year, and we think net Production Growth is going to be, is going to be down next year. So productions till growing, but still growing, but the rate of growth is slowing. And i think if Global Growth prospects were better, youd see a healthier Energy Business and more capex there. Maria what do you think thats going to mean . I mean, the Energy Business has been the leadership business. Youve got the front row seat there to see really whats going on in this industry. Are we going to see job cuts as a result of this slowdown . Is it getting that severe . Yeah, and weve already seen even though job with growth in texas is very positive, Energy Job Growth has been a headwind. And i think, yeah, thats likely to continue. So theres the issue that the price is lower. The other issue is the shale business, the shale boom which has been an incredible burst, addition to u. S. Production growth and makes us the largest producer in the world its not as profitable as people expected. So youre also seeing Capital Providers exert more capital discipline. Theyre saying if you want to spend on capex its got to come from cash flow. But it all relates to sluggish global demand, slowing Global Growth. If Global Growth stabilized or improved, i think youd see a healthier energy sector. Maria and yet the Federal Reserve is on hold the in terms of cutting interest rates. Why is the fed on hold . Reason were on hold is if you roll back to summer, these weaknesses i just described were present then. And so i felt strongly, as did my colleagues, that we ought to move and we did in july, we moved in september, and with some debate we moved in october. And its my own view that those moves have been sufficient to address these concerns about Global Growth mainly due to trade, manufacturing and Business Investment. And also the other thing that we were able to do which i felt was important straighten out the yield curve where we had an inverted curve, we now have an upwardlysloping curve. I think policy now, the setting about right, and i think we should stand pat here. Maria the policy is about right, and this market will not quit. What do you make of the dow, the nasdaq, s p in record territory throughout the week . You know, Alan Greenspan used to say theres something to that because its basically showing consumers, its the wealth effect. It makes people feel rusher, and then they go and spend richer, and then they go and spend and its sort of a cycle of whats going on in the economy. How do you see it . Well, and in this job im careful not to comment too much about the market, but ill say the following corporate profit, interestingly, in 2019 pretty sluggish. You know, flattish with last year. But weve had a dramatic rally in, along the treasury curve. The tenyear treasury just a year ago right now was at 3. 25, today its at 1. 85 plus or minus. And so that rally, i think has probably provide a big tailwind to Financial Assets generally, and i think certainly youre seeing that in the stock market. But i think youre seeing it in real estate and across the board on Financial Assets. Maria yeah, what a move in rates. Thats pretty incredible that its been a year ago since we saw 3. 25 . Robert, what is your take on capex . You speak with Business Managers all the time as you get a feel for what theyre seeing as you do your sourcing. Whats it going to pay for them to start spending on their businesses again in terms of Capital Expenditures . For some of the uncertainty to alleviate x. This is not just the trade dispute with china. Its, it would help if usmca got approved, which were on the mississippiic it will in the optimistic it will in the next six months. But i think theres enough uncertainty globally and threat of auto tariffs. All those things create uncertainty for businesses. And to some extent, i also hear from businesses shortages of workers, shortages of engineers is limiting their desire to invests in capex. But i think this broad uncertainty is causing businesses not to cancel projects, but to put them on hold for 2019 and 20. And i, my expectation is unless you get some clarity, better clarity on trade globally, i think that sluggishness is probably going to continue. Maria all right. And, of course, looking for workers, youve got to get the right workers. Good to see that the state of texas has gone down the reform of education to arm our workers with the best possible yeah, critical. More it is critical. And to put them in the best position they can be in. Robert kaplan, it is great to see you as always. Thank you, sir. Thanks, maria. Maria dont go anywhere, mark cuban is up next. Stay with me. groans hmph. food grunting menacingly when the food you love doesnt love you back, stay smooth and fight heartburn fast with tums smoothies. Tum tumtum tum tums with tums smoothies. When we were looking he wanted someone super quiet. Yeah, and he wanted someone to help out with chores. So, we got jeanpierre. But one thing we could both agree on was getting geico to help with renters insurance. 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Do people understand the difference, capitalism versus socialism, and do you think thats what 2020 is setting itself up for in. I dont think they always do understand the difference, because why would they need to learn, you know . I think in this country the American Dream is aalive and well, and even alive and well, and even despite Elizabeth Warren and bernie sand earth really taking aim at capitalism, i think capitalism always wins. Its the best system. No other systems been able to survive. And so while its okay to cast aspersions and to discuss alternatives in socialism, this is still the United States of america, and well still and will remain a capitalist society. Maria you know, growth has happened once again in the economy, and wages are up. As a result of wages being up, the bottom earners have actually done better in the last couple of years. What is the answer to inequality issue . Because that thats what theyre standing on right. Measure more in terms of making the rich pay more to help those who can. Im a big with believer in lifting people up from the bottom. I am a big believer in the 15 mileanhour minimum wage, and i believe minimum wage, and im okay if everybody plays by the same rules. If everybodys required to pay 15 an hour as a minimum wage, then we all compete the same way, and thats capitalism at its best. So thats part one. Part two is i think we have to find ways to lift people, because if youre working by the hour when i was a bartender and getting paid by the hour, theres no way im saving a lot of money. Im living paycheck to paycheck. Im six guys living in a threebedroom apartment and im sleeping on the floor. Its just one small example that if we allow people to participate with assets that appreciate, then theyre going to find ways to increase their net worth and get out of the grind of just living paycheck to paycheck. Maria you agree give people the opportunity to work. Yeah, of course. I want them to have the opportunity to work, but i also want them to participate because i do think we have an issue where particularly with public company, ceos and boards are rewarding themselves to the, at the expense of the lowest paid workers. So if it were up to me, i would require all ceos to be paid in cash. I wouldnt care if you paid them 100 million a year in cash, but i wouldnt pay them in stock or unless youve made them available to all employees. Maria all employees have the opportunity to buy stock not necessarily. If youre living paycheck to paycheck maria oh, i see what youre saying. If im working as a stock clerk at walmart, if were really going to impact the economy, if were bale really going to help people rise from the bottom up, they should have the right to get some of those options as well. Maria yeah. Big believer in buying into your company. Right, absolutely. Maria they dont have the mean to do so. Ive always made the choice, and thats the beauty of capitalism, that ive given stock to everybody. When we sold broadcast. Com, 330 employees, 300 became millionaires. When i just sold axis tv, i made sure we had discretionary bonuses given to everybody that was a significant part of the sale. I just think we need more of that, and i think theres ways to encourage it. Maria Elizabeth Warren is out with a new ad, basically targeting the wealth withiest americans, putting wealthiest americans putting on screen this guy went to jail, this guy was paid 70 million. How do you think thats going to play out . The ad that shes out now with on tv attacking rich. Yeah. Shes playing to the base, obviously. Maria yeah. Its very trumpian. You pick a section of people that your base has no problem casting aspersions at, you know, theyre not going to turn on her because shes picking on billionaires. And so its smart from one perspective, but i dont think it plays with america. Maria lets slim in a short break slip in a short break. Weve got a lot more with mark cuban when we come back. Stay with us. vo the flock blindly falls into formation. Flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Thats it. Im calling kohler about their walkin bath. [ sigh ] not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. 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Its all sciencebased. I want our players to be as healthy as possible, hopefully the mavs make the playoffs this year, and theyre ready to play. We used to have our players playing 40 plus minutes a game, now theyre playing 35 minute a game. Part of that is because of load management. But what we have to be smart, we have to respect our business partners, you know . And so if youre going to load manage a player and give him a day off, you dont want to do it on the road, you dont want to do it on the night of a national tv game. I think a great thing for the nba, but we also have to be smart. Maria sports is probably the most highly valued intellectual property that this country has, right . Yeah. Maria why is that and where is that going . Youve got the Major Networks making a big deal, fox has a very important relationship with the nfl. You know, we make a big deal of the pregame, the halftime, you know . Is that going to be the same if you have some of the Tech Companies coming in and wanting that market share. Yeah, i think its going to increase the value of our content simply because when you look at the streaming providers, one of the issues for them is going to be turn. Theyre going to want to keep their subscribers happy for as long as possible rather than jumping you know, they binge watch for a week and and then switch to another provider who has another show. This thing about the nba is our content isnt just nine months a year anymore, its twelve months a year. So i think those streaming providers are going to find far more value in the nba because were going to reduce churn significantly and increase subscribers. Maria what about streaming . This week disney plus went live, 10 million subscribers a day. The ceo of netflix just the other day said, yeah, we spent 13 billion this year on original content, were going to spend 15 billion. How long can the market give Reed Hastings this checkbook . As long as he keeps on growing globally. Remember, traditionally we saw content being american and englishbased, right in theyve got however many subscribers globally, so theyre not just creating content for the american or english markets, theyre creating for markets in india and china and wherever else they are and selling subscriptions. And so that numbers going to continue to grow, and thats a good thing. The reason im really still bullish on netflix is because they know exactly who their customer is. They have one customer, thats the streaming consumer. Disney has multiple consumers, they have the streaming consumer, traditional television, the theatrical, theme parks and, yeah, theres support between each one of them, but netflix knows exactly who their customer is. Maria Colin Kaepernick wants to get back into the game. People are saying hes going to get another job and start kneeling again. How hard is it as a team owner or a league owner, whatever, to take on the risk of hiring somebody like a Colin Kaepernick . Its not a risk. Were americans first. Thats the beauty of this country. You know, i dont get to be where i am, i dont get to sit here, i dont get to have my net worth without living in this country. And i have to accept the things i agree with and the things i disagree with. And i actually like the idea that col listen kaepernick Colin Kaepernick speaks out, that lebron james speaks out. That maria or mark cuban speaks out because thats what makes this country different versus china. And we cant try to belittle free speech, you know, thats the whole china thing. We have to open the door and let people speak. Maria you know what . People worry that other countries are getting ahead of us, in particular a. I. Do you worry that china is ahead of us . Yes, yes. And russia too. Simply because we dont have a coherent a. I. Strategy in the United States yet x we should be investing heavily not just for business reasons, not just for political reasons, but for militarily. Maria exactly. Does it bother you, for example, google i mean, the jewel of google is its a. I. , the best in the world at google, and theyve got their a. I. Lab in beijing. Yeah. Thats not a good thing, and i think that says a lot about our National Strategies and also says a lot about our educational system, you know . That we dont, were not gearing kids up to s. T. E. M. , were not gearing kids up towards becoming engineers. I dont know the exact number, but they graduate more engineers if in a single year than we have in all of our universities, something to that effect. So were going to have to work harder to compete. And whats even worser, our immigration policies are making it tougher. We educate kids from around the world and then ask them to leave. We need that talented, we need that talented to stay here. Maria these Technology Companies are more powerful, bigger than we ever expected them to be and, you know, google was 90 market snare search, and then the censoring of conservative conversations also an issue. You dont think they should be broken up, but what about regulation on Technology Companies that are too powerful in. Its a tough question. A, i dont think theyre too powerful, i think, you know, you dont have to use facebook, you dont have to use google search. I dont think theyre necessarily tamping down conversations from any political viewpoint specifically because its so a. I. Driven maria Tulsi Gabbard is suing them, den nunes that doesnt mean theyre right. What we just talked about about Artificial Intelligence, the idea that youre going to have Neural Networks which are black boxdriven just find their way to tamping down maria somebodys got to create that algorithm no, it doesnt work that way. You use data to train Artificial Intelligence maria what if the datas biased. Data can be biased butting again, i dont think its interpretational because the scale of data that they use, itd be very, very difficult to choose one side other the other. Maria mark, great to have you. Dont go anywhere, more wall street right after this. 1 in 5 people you meet wear dentures. Yeah. That many but right now, is not the time to talk about it. So when youre ready, search my denture care. Poligrip and polident. Fixed. Fresh. And just between us. A former army medic, made of the we maflexibility to handle members like kate. Whatever monday has in store and tackle four things at once. So when her car got hit, she didnt worry. She simply filed a claim on her usaa app and said. I got this. Usaa insurance is made the way kate needs it easy. She can even pick her payment plan so its easy on her budget and her life. Usaa. What youre made of, were made for. Usaa i am royalty of racing, i am alfa romeo. Maria welcome back. Coming up next weekend on the program, dont miss it, we have another great show. Nyse president Stacey Cunningham is with me along with alan patricof. And this weekend on Fox News Channel for sunday morning futures at 10 a. M. Live, texas congressman john rat live and georgia congressman doug collins are, they were knee deep in the inpeachment hearings this week. The show is live at 10 a. M. On sundays. Plus on fox business channel, 69 a. M. Eastern for mornings with maria. Set the tone every weekday. Have a great rest of the weekend, everybody. Thanks so much for joining us. Ill see you nex a sailor who was with jfk aboard pt109. The ship came out of the dark, and harold was killed. The young mans mother begins a correspondence with the future president. I was actually shocked when i saw what the letters detailed. The letters are tucked away for years. These documents could be of significant historical value, and they could also be worth a lot of money. 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